It’s abundantly clear that any company that wishes to succeed in today’s business landscape can only do so by leaning on digital solutions. The last decade saw how companies across all industries started a digitalization process that led them to adopt software of all kinds to gain a competitive advantage. But what once was a strategic move has now become a mandatory step.
That couldn’t be more true after the phone number list Coronavirus pandemic. As the crisis brought about by the COVID-19 showed us, digital technologies are essential to keep a business running. That’s why so many companies rushed to adopt digital applications during the first months of the pandemic, ushering in the era of digital acceleration.
What Is Software Development Outsourcing?
Software outsourcing takes place when a company decides to hire a third-party development team to take care of its software development needs. In other words, outsourcing happens when a business partners with external developers and tasks them with the full or partial development of the digital solutions the business needs to meet its customers’ demands.
There are 3 major ways in which you can outsource your development: onshore, offshore, and nearshore outsourcing:
- Onshore outsourcing happens when you hire a software development company in your same country (be it in your same city or not). For instance, a NY-based company that hires a development company from Chicago is onshoring its software development.
- Offshore outsourcing is about hiring maximum cost per conversion to make it profitable a development company located in a distant country or region, typically to lower costs. For example, a US-based company that hires a company from India would be offshoring its software development.
- Nearshore outsourcing is halfway between the previous options, as it implies hiring a software company located in a nearby country or region. Thus, a US company that hires a Latin American software development company would be nearshoring its development needs.
Software Outsourcing Services
Apart from the ways in which you can outsource your development projects, you also need to consider models in which the outsourcing services are served to you. There are 3 main software outsourcing service models to outsource development, maintenance, and testing, each of which responds to different needs.
- Autonomous Dedicated Teams. A dedicated team is a group of software engineers from your company who work autonomously. This means that they can take care of the parts of the project your in-house team can’t handle. This is a good way to increase your productivity by adding a team of experienced developers that can take care of specific parts of your project on demand.
- Staff augmentation. By augmenting mobile list your IT staff, you add the key roles you’re lacking in-house to power up your team. In other words, you’ll be in charge of the development project and will only add some needed engineers according to specific needs. In that way, you can bridge any skills gap in your team quickly and without committing to a full-time employee.
- End-to-End development. With this model, you hire a software development team to take care of the entire project. You only provide your needs and requirements at the start and give feedback along the way. The team works on the product and presents you with different iterations until they reach the final product. This is the perfect alternative for you if you don’t have in-house engineers or if the ones you have are occupied with other, more pressing projects.